Tesco cuts prices by 20% in border outlets

Tesco has announced a 20% cut in the price of around 12,500 products at 11 of its outlets in border counties.

The British retailer is making the cuts in stores from Louth to Donegal in an effort to stem the tide of shoppers going north of the border to avail of significantly lower prices.

It also says it will be reducing the price of milk, meat and poultry across the country from this week.

The company said the move would narrow the price difference of thousands of household goods and groceries to its lowest level between the North and the Republic of Ireland in three decades.

On Saturday, bosses shut down 11 outlets in border counties worst affected by the flow of shoppers to mainly Sainsbury’s and Asda in the North, to restock shelves with goods sourced from the UK.

Announcing the reopening of the stores in counties Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth this morning, Tesco Ireland chief executive Tony Keohane said prices on 12,500 goods were reduced by an average of 22%.

“This substantial investment will enable us to compete in the long term with prices north of the border and will remove the incentive or the need for consumers to travel, which has been bad for jobs, for local economies and the national economy,” he said.

“When currency costs and travel and journey times are taken into account, we believe many customers will find it is cheaper to shop in these stores south of the border.”

Mr Keohane said the new prices were “long term structural changes” and not just temporary promotional deals.

He added: “We are starting this in these 11 stores to secure jobs and livelihoods in the border towns.”